I-Remit trims net loss in 3rd quarter as remittances climb
REMITTANCE SERVICE provider I-Remit, Inc. managed to trim its attributable net loss for the third quarter to P16.78 million from P34.95 million in the same period a year ago on the back of lower expenses and higher revenue.
In a stock exchange filing on Monday, the listed company said its gross revenue for the third quarter went up 4.5% to P156.59 million from P149.80 million in the same period a year ago amid higher remittances, citing central bank data.
“Personal remittances from overseas Filipinos rose by 4.8% to $2.89 billion in August 2021 from $2.76 billion in the same month last year. This resulted in the increase in cumulative remittances by 5.9% in the first eight months of 2021 to $22.67 billion from $21.41 billion recorded in the same period in 2020,” I-Remit said.
“The growth in personal remittances in August was due to remittances sent by land-based workers with work contracts of one year or more, which increased by 4.2% to $2.21 billion from $2.12 billion in the same month last year, and sea- and land-based workers with work contracts of less than one year, which grew by 8.4% to $629 million from $580 million a year ago,” it added.
Cash remittances coursed through banks also grew by 5% to $2.61 billion in August from $2.483 billion registered in the same month last year.
Meanwhile, I-Remit’s total expenses for the quarter went down 6.1% to P171.45 million from P182.55 million previously.
For the first nine months, the company’s attributable net loss went down to P96.76 million from P107.02 million last year.
Gross revenue for the January-to-September period declined by 10% to P440.88 million from P489.70 million in the same period last year. However, total expenses fell 10.5% to P529.64 million from P591.55 million previously.
“On a year-to-date basis, cash remittances in January-August 2021 amounted to $20.38 billion, 5.7% higher than the year-ago level of $19.285 billion,” the company noted.
The growth in cash remittances from the United States, Malaysia, and South Korea contributed largely to the increase in remittances in January to August this year, it said.
I-Remit shares closed 2.75% lower at P1.06 apiece on Monday. — Arjay L. Balinbin
